Industrial production growth improves to 2.1% in June 2016

Eighteen out of 22 industry groups in the manufacturing sector shows positive growth in June 2016

India's industrial production (IIP) increased 2.1% in June 2016 over June 2015, showing acceleration from 1.1% n the previous month. The manufacturing sector production rose 0.9%, while the mining output jumped 4.7% in June 2016 contributing to improvement in industrial production growth. The electricity generation growth accelerated to 8.3% from 4.7% in the previous month.

As per the use-based classification, the basic goods output moved up 5.9% in June 2016 over a year ago, while the output of intermediate goods moved up 6.1%. The consumer goods output increased 2.9%, but that of capital goods plunged 16.5% in June 2016. Within consumer goods, the production of consumer durables increased 5.6%, while that of consumer non-durables rose 1.1% in June 2016.

The IIP growth in May 2016 has been revised downwards to 1.1% in the first revision compared with 1.2% reported provisionally. Meanwhile, the growth in March 2016 has also retained unchanged at 0.3% at the final revision from first revision, while it is compared with 0.1% reported provisionally.

In terms of industries, eighteen (18) out of the twenty two (22) industry groups in the manufacturing sector have shown positive growth during the month of June 2016 as compared to the corresponding month of the previous year.

The industry group 'Radio, TV and communication equipment & apparatus' has shown the highest positive growth of 15.8% followed by 8.8% in 'Motor vehicles, trailers & semi-trailers' and 8.7% in 'Other transport equipment'. On the other hand, 'Electrical machinery & apparatus' has shown the highest negative growth of (-) 46.1%, followed by (-) 13.8% in 'Luggage, handbags, saddlery, harness & footwear; tanning and dressing of leather products' and (-) 9.0% in 'Furniture; manufacturing'.

Some important items that have registered high positive growth include 'Lubricating oil' 62.2%, 'Woollen Carpets' 38.9%, 'Scooters and Mopeds' 31.5%, 'Ethylene' 30.1%, 'Steel structures' 27.7% and 'Telephone instruments including mobile phone and accessories' 25.3%.

Some important items showing high negative growth during the current month over the same month in previous year include 'Cable, Rubber Insulated' (-) 84.0%, 'Sugar Machinery' (-) 73.2%, 'Heat Exchangers' (-) 53.3%, 'Particle Boards' (-) 35.5% and 'H R Sheets' (-) 26.2%.

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